NAPS Global India Limited
NAPS Global India Limited, a Mumbai-based textile importer and supplier, is set to enter the public market with its Initial Public Offering (IPO). The company has played a significant role in India’s textile industry by sourcing high-quality fabrics from China and Hong Kong for garment manufacturers in Maharashtra. This article provides an in-depth analysis of the IPO, covering key aspects such as the company’s background, industry overview, financial performance, risk factors, and objectives of the issue.
NAPS Global India Limited was founded in 2014 by Pankaj Jain and Ronak Mistry, both of whom have extensive experience in the textile industry. The company specializes in the import and distribution of fabrics, including cotton, velvet, linen, and synthetic materials.
NAPS Global India Limited, formerly known as NAPS Trading Private Limited, is launching an Initial Public Offering (IPO). The company has undergone several changes in its structure and name, converting to a public limited entity in 2024.
NAPS Global India IPO Details
The company issue size 1,320,000 equity shares at a face value of ₹10 per share. The breakdown of the issue is as follows:
- IPO Size Rs. 11.88 crore
- Lot Size 1600 shares
- Fresh Issue 13,20,000 shares
- Total Equity Shares Offered: 13,20,000 shares of ₹10 each
- Offer Price: ₹90 per share
- IPO Type: Fixed Price Issue
- Market Maker Reservation: 72,000 equity shares
- Stock Exchange Listing: BSE SME Platform
NAPS Global India IPO Dates
NAPS Global India Ltd. is set to launch its Initial Public Offering (IPO) with the following key dates:
- Issue Opening Date: March 4, 2025
- Issue Closing Date: March 6, 2025
- Allotment Finalization: March 7, 2025
- Initiation of Refunds: March 10, 2025
- Credit of Shares to Demat Accounts: March 10, 2025
- Listing Date: March 11, 2025
Application and Allotment Process
- Minimum Application Size: 1600
- Payment Mode: ASBA (Applications Supported by Blocked Amount)
- Listing Timeline: Shares expected to be credited within three working days post-allotment
Post-issue, the company’s total equity shares will increase to 4,430,000. The IPO aims to enhance liquidity and provide investors with an opportunity to participate in the company’s growth.
NAPS Global India Company Details
- Incorporation: March 28, 2014
- Registered Office: Mumbai, Maharashtra
- Promoters: Pankaj Jain & Ronak Mistry
- Business Model: Engaged in trading and global commerce
NAPS Global India Financial Performance
Revenue and Profitability of the company in financial statements indicate a consistent growth trajectory. Some key financial metrics include:
- Revenue Growth: Significant increase in sales over the past three years.
- Profit Margins: Stable due to efficient sourcing and cost management.
- Asset Utilization: The asset-light model enables high return on capital.
Key Financial Indicators (FY 2024)
- Revenue Contribution from Maharashtra: 95.48% of total revenue.
- Inventory and Trade Receivables: These constitute a significant portion of total assets.
- Top Suppliers: The top 10 suppliers accounted for over 90% of purchases.
- Revenue: ₹4,731.29 lakhs
- EBITDA: ₹188.55 lakhs
- PAT (Profit After Tax): ₹145.22 lakhs
- EBITDA Margin: 3.99%
- PAT Margin: 3.07%
- Return on Average Equity: 59.15%
NAPS Global India IPO Objectives
- Working Capital: Majority of the funds will support inventory purchases.
- Corporate Growth: Business expansion, marketing, and brand enhancement.
- Business Expansion
- General Corporate Purposes
The promoters of NAPS Global India Limited are Pankaj Jain and Ronak Mistry. As of the date of the draft prospectus, the shareholding details are as follows:
NAPS Global India Pre-Issue Shareholding of Promoters and Promoter Group:
The promoters of NAPS Global India Limited are Pankaj Jain and Ronak Mistry. As of the date of the draft prospectus, the shareholding details are as follows:
- Pankaj Jain: 16,47,400 shares (52.97%)
- Ronak Mistry: 6,07,600 shares (19.54%)
- Soniya Jain (Promoter Group): 2,70,000 shares (8.68%)
- Ansh Jain (Promoter Group): 2,20,000 shares (7.07%)
- Pankaj Jain HUF (Promoter Group): 1,55,000 shares (4.98%)
- Smita Ronak Mistry (Promoter Group): 1,55,000 shares (4.98%)
- Sunderlal Madanlal Jain (Promoter Group): 55,000 shares (1.77%)
NAPS Global India IPO GMP
NAPS Global India Limited is launching its IPO from March 4 to March 6, 2025, with a price of ₹90 per share. The Grey Market Premium (GMP) is currently unavailable. Investors must purchase a minimum lot of 1,600 shares, amounting to an initial investment of ₹1,44,000. The company operates in the textile sector, focusing on the import of cotton and synthetic fabrics, mainly sourced from China and Hong Kong.
Total Promoters & Promoter Group Holding (Pre-Issue): 31,10,000 shares (100%)
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NAPS Global India Business Model
- Product Sourcing: The company imports bulk fabric from international manufacturers, ensuring competitive pricing and quality.
- Distribution Network: Primarily serving garment manufacturers and vendors in Maharashtra.
- Asset-Light Model: Operates through a centralized office in Mumbai and a warehouse in Thane.
NAPS Global India Growth and Expansion
The company has experienced significant growth over the past decade, fueled by increasing demand for high-quality fabrics. The IPO will help expand operations, improve supply chain efficiency, and strengthen its financial position.
Textile Industry in India
India’s textile industry is a key driver of the economy, contributing significantly to employment and exports. The Indian textile market is expected to reach $209 billion by 2029.
Market Trends
- Rising Demand for Sustainable Fabrics: Consumers are increasingly opting for eco-friendly materials.
- Growth in Technical Textiles: Used in industries like automotive and healthcare.
- Government Support: Incentives for textile manufacturers under various schemes.
Competitive Landscape
The textile import and distribution industry in India is highly competitive, with numerous players ranging from small-scale wholesalers to large corporations. NAPS Global India Limited competes on factors such as price, quality, and supply chain efficiency.
Risk Factors
Investing in NAPS Global India Limited carries inherent risks, which prospective investors should consider.
Internal Risks
- Customer and Supplier Dependency: A large portion of revenue comes from Maharashtra, increasing regional concentration risk.
- Working Capital Intensity: High dependency on trade receivables and inventory.
- Legal Proceedings: The company, its promoters, and directors are involved in certain legal cases, which may impact future operations.
External Risks
- Market Volatility: Textile prices fluctuate due to raw material costs.
- Regulatory Changes: Compliance with Indian corporate and tax laws can affect profitability.
- Foreign Exchange Risk: Since the company imports fabrics, currency fluctuations may impact costs.
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